Then, fire them.
The Canadian Wheat Board has now officially suffered a huge “discretionary commodity trading” related loss of C$226 million last year, leaving the Board with a loss for the year of just under C$90 million. There is no possible explanation for this loss other than the management took speculative positions in wheat that clearly went massively against them, and those losses were averaged into, making them worse as the losses increased, eventually becoming large enough to force the fund to liquidate it positions. The loss is all the more shocking in that the Wheat Board buys wheat from Canada’s farmers at rather material discounts to the spot price and then “markets” that wheat through its pooling activities. Thus, it is one thing to lose money trading speculatively; it is quite another to lose a sum this large when one has a huge lead on every “trade” from the outset.
We cannot be certain yet what has happened, but we submit the following: that during the massive run-up in spring wheat futures last spring, as spring wheat ran from $4/bushel to $25/bushel, there were rumours which we reported here that a “quasi-government Canadian entity” was on the wrong side of the trade and that that entity was “squeezed” into the final trading sessions of the March and especially the May futures. We suggested then that it was the CWB that was caught short, and we speculated that the Board was itself speculating, however, we could not be certain that that was correct. Now we are obviously somewhat more certain that that is what has happened.
Well, Mr. Ignatieff?
You were here in Saskatoon a day or so ago, opining that Liberals need to stop campaigning against the west,
"Sometimes we've fallen prey to the temptation to run against the West, you know, to run against Alberta, to run against the Saskatchewan energy sector. This is not the way to go," .
Thank you for finally acknowledging in public your party's long standing policy of pitting the rest of Canada against the west for electoral gain. It's a start.
Now here's your chance to demonstrate how generous that reach is.
Hammer Stephen Harper on this issue. Demand the government dispatch the Auditor General to the Canadian Wheat Board offices. Ask how $226 million dollars of famers money blown in an orgy of incompetence, translated into a self-directed CWB pay raise for "performance".
Finally, demand freedom for prairie farmers to sell their grain to whatever exporter provides the best return. You're the human rights guy, right? Let's see you put your political money where your mouth is.
Anyone who knows the difference between politicing and polcy isn't holding their breath. Can a leopard change its spots or a zebra change its stripes? No more than a Liberal can changes its approach to working with Western Canada.
Iggy is trying "the mouth that roared" trick.
He doesn't have the cred to carry it off.
Don't trust slick city boys with fancy names.
I just fired off an e-mail to my MP - David Anderson to urge the PM to send in the Auditor General. David is no fan of the CWB so he probably doesn't need much prodding.
Iggy. Make a proposal to the House to give choice. Otherwise you are just blowing smoke. In the West talk is cheap, talk from the Liberal Party of Toronto is in the remnant bin. You can introduce member's Bills, in other words actually do something. You don't need power to get things done. You can get good things done as opposition if your mind works more than one way.
So the magic of "public" ownership doesn't eliminate human foibles! Well, wotta surprise.
The best means of combatting socialism may very well be increasing the political clout of the Auditor-General. If you've ever wondered why the probitous have been called a four-letter word beginning with "N," you might as well stop wondering.
Liberals demanding an audit of the CWB? There is a better chance of Jack Layton calling on Israel to nuke Tehran.
The only Western Canadians capable of being duped by Ignatieff's BS are the chronically stupid .... such as those who insist on returning Ralph Goodale to Ottawa.
Iggy's got Special K as an "adviser". He's all about human rights, for sure. People have the right to do as they're told by their betters.
Now shut the hell up and get moving on that plow. You've got some serious shortfalls to make up, peons. What do you mean, "but its winter"? Don't bother me with details!
I wish they would do the same for the Caisse de Dépôt here in Quebec. They were also caught speculating but with our pension money. So far no one has been fired. The ex-president is on burn out leave and the ex-ex president has a golden parachute and another cushy job.
Don't forget to ask that the government act on indicting any conflicted interest improprieties the AG finds in her audit.
The CWB inside trader's net is a well established profiteering syndicate that needs to be broken if free market dynamics are ever to return to this commodity.
Oddly enough this didn't make the news on the CBC Saskatchewan site.
I need help, I can't find where the $226 million is shown. as a loss in the report..
I'm not doubting it just would like to read it and understand it better
TIA
I think we need a completely independent audit, the auditor general is after all a creature of government.
Here is the report
http://www.cwb.ca/public/en/about/investor/annual/pdf/07-08/2007-08_annual-report.pdf
Page 45, in the small print, item number 3
Why did he call it a "temptation"? To me, that speaks volumes about how liberals think.
Great post. Iggy could easily show his "support" for westerners by working with the Cons to eliminate the CWB.
I'll start holding my breath now!
While auditing the CWB, how about a forensic audit of that fishing plant run by natives. I would like to see an audit of all funds that have gone to native groups/reserves/organizations and leaders for the past 25 yrs. Bet it would go a long way to solve our deficit.
It is way past time for leaders of cities, provinces and the country and the media to bury political correctness forever. All it has ever done is deny the truth about what is really going on.
A cousin of mine farms in Sask. He figures there are about 10,000 serious full time farmers who farm significant acres. Most others are part timers who seed the back 40 or rent out thier land, or simply have permit books.
If that is accurate, those 10,000 farmers each just took a fairly significant hit.
Whoops, forgot to include the Alta and Man farmers. Still a significant amount of dough that the CWB lost on farmers behalf.
I haven't looked at a CWB report in sometime (Enrons scare me) but I have an accounting question.
When the CWB carries say 4 mil tonnes of grain over from one year (say $600/mt) to later year (say $400/mt), does this get recorded anywhere in the accounting?
Real businesses have to account for inventory changes and values somewhere, so where or how does the CWB do this?
I mean, you can't get any sort of real measure of the performance of a company if this kind of business decision is not taken into account, right?
Since the CWB reads this sight religiously (heh) maybe a CWB type could let us know eh?
Anonymously of course.
Iggy's talk is cheap. He's not saying anything that any other Liberal leader hasn't said when bottom feeding for votes. The respect for the west will last until the next poll showing the Libs dropping a point or two in Toronto or Quebec then we'll be called every name under the sun.
Most important is Kate's last statement: "demand freedom for prairie farmers to sell their grain" and remarkably, it is quite achievable within the present Act. I know because both my wheat and barley are out of the monopoly.
Licence granted or licence denied is all that separates eastern grain from prairie grain with the exception of a priviledged few such as seed growers and selected unregisted varieties including mine. The Government has the authority to order the CWB to grant licences to quit discriminating and give licences to all producers. This is what farmers should be asking for.
[quote]I think we need a completely independent audit, the auditor general is after all a creature of government. [/quote]
It's my opinion that Canada's Auditor General is incompetent or indifferent to misuse of federal/taxpayers funds.
She is more of an efficiency expert, used in a political sense, to protect the Crown from criticism.
As a distant observer, it appears that the LIBRANOs may have infiltrated the CWB....It fits....
Simple knowledge of how commodity markets function would indicate that for any such loss, somebody gained.....ying and yang....
Wonder if Iggy knows wheat from Puffin poop?
Has he been getting information from his Spud Island MP, Wayne Easter on the subject of the Wheat Board? Old Wayner does a lot yelling in the HOC on the subject so he's their resident expert.
Was Ralphy Goodale towing Ignatieff around like a little puppy dog on his Waestern swing?
Sooner or later Liberals for a purely strategic reason will be cutting CPC on the right flank. They don't need to get any support from the voters on the right. They will simply point to problems with bureaucracy and they will say : "look it is the Conservative government fault and just as same as Adscam". The average voter perspective of CPC will be demoralized Once the Liberals are in the position of power they will be glad to reverse themselves.
There was a time, when I thought that Stephen Harper would be a long runner. He has entangled himself with the small steps which are a prescription for tripping. I guess, "incremental" is a fancy word for getting trapped in the corner.
Kate knows Iggy wont do it. The Liberal party has supported the CWB for ages, including ralphie.
Smart woman, dont ask questions you dont already know the answer to.
Liz It will be Puffin Wheat and yea Mr. Goodale was there to catch thrown perogies.
xiat, dream on and keep drinking the Kool Aid.
Bruce...and what exactly are you saying?
As long as Iggy has Ralph Goodale and Wayne Easter in the wings - or worse, on centre stage - the Liberals' success in Western Canada will be the same as it's been for the last 40 years. As long as they keep trotting out the same tired old policies - government funded day-care, gun registries, regional development agencies, environmental extremism, CWB, etc etc, they will get the same results.
Until we see Iggy critically reforming the Liberal Party both in terms of ridding itself of its old entitlement type folks (Goodale et al) and of its old big government policies, its just window dressing. It that happens, his mealy-mouthed words won't change a thing.
As long as Iggy has Ralph Goodale and Wayne Easter in the wings - or worse, on centre stage - the Liberals' success in Western Canada will be the same as it's been for the last 40 years. As long as they keep trotting out the same tired old policies - government funded day-care, gun registries, regional development agencies, environmental extremism, CWB, etc etc, they will get the same results.
Until we see Iggy critically reforming the Liberal Party both in terms of ridding itself of its old entitlement type folks (Goodale et al) and of its old big government policies, its just window dressing. It that happens, his mealy-mouthed words won't change a thing.
This is such a disgusting truth again how the CWB is raping western Farmers and the Liberals and NDP find this completely acceptable. Where is the media, where is the NFU. The wheatgrowers are doing a great job pointing out numbers and facts and asking tough questions. Where is Ritz, the CWB should be hauled in front of the minister and told he WILL answer all questions or the next will be from a judge on a directors liability. Why is the CWB paying out Exec bonuses and wasting money on celebrations and ten yrs of screwing farmers. Where is the accountability, Larry Hill knew these numbers before the last election, farmers would have loved to have known these numbers then.
In answer to rockyt's question on inventory;
"Inventory of grain on hand at July 31 is valued at the amount that is ultimately expected to be received as sale proceeds less costs to be incurred to realize these sales values. The inventory of grain held at year-end is valued against grain sales contracts. On average, this would represent approximately 96 per cent of the grain in inventory".
So in other words, it is valued in a consistent manner with other enterprises with inventory on their balance sheet.
There are lots of reasons to hate the CWB but their inventory valuation policies aren't one!!
When Iggy heard there were gophers "out west" he felt kinship, for as an assistant professor at Harvard he had to go for the lattes and muffins. The liberals are integrity-intolerant and therefore will do nothing about the CWB for fear of rashes.
Hey Xiat, that's exactly the logic that brought on the first Civil War.
On another note; if I am ever in Canada on a Farm Road driving behind a CWB Member and Kate comes roaring up on that 3-cylinder 2-cycle Carbon-Foot Print laying pocket-rocket, just honk I will get out of the way.
,
Hammer Stephen Harper on this issue. Demand the government dispatch the Auditor General to the Canadian Wheat Board offices.
Ha ha, Harper lost his nads the moment his residency changed from Alberta to the center of the earth.
We're screwed out west.
a liberal do something logicial and right? ahahahahahahahahahahahaha.
xiat. good observation. i agree the pm is just not agressive enough.
"Finally, demand freedom for prairie farmers to sell their grain to whatever exporter provides the best return."
Presumably after the various governments stop subsidizing said farmers? Or is this one of those "stop controlling us but continue to subsidize us with taxpayers money" gambits?
"stop controlling us but continue to subsidize us with taxpayers money" ~ Doodle at February 17, 2009 5:46 PM
You propose a good point Doodle, now if you could flesh it out with something that connects the CWB Act with subsidies
Simply a case of a Bureaucracy doing what Bureaucracy must.
Act in it's own interest at the expense of the mission to which it was set.
Although I am not convinced that ALL of the woes of our western grain growers are caused by the CWB ... I am convinced that the CWB needs a good house cleaning.
Perhaps even a radical housecleaning.
As in legislate the immediate end of all CWB operations. Investigate the executive and management for fraud. Sell off all the assets and close the books.
If the CWB was doing anything useful it will become apparent in short order and we can go from there to finding reason ... or not ... for operating a government run marketing board.
We've tried the other way and it is NOT working.
Are we addicted to repeating unsuccessful strategies?
By all means call on Ottawa to put an end to this nonsense.
Thanks Jethro for answering my curiosity.
It leads to more questions though.
It is such a shame that Western Canada's agricultural prosperity has been stifled, choked off, and held back by the CWB for so long simply to meet the needs of the Crooked Liberal Party du Canada.
Harper's not going to spark a battle over the Wheat Board.
It's a biggie, so is the HRDC and the CBC and the gun registry, and the Senate, and on ad neuseum.
There's one quick solution, a majority gov't.
Even then, I fear the CBC will survive.
IT'S A MIRACLE!
There is finally a piece of bad economic news that isn't headline news at the CBC.
Of course it's because Iggy supports the Canadian Wheat Board and Harper doesn't that they are studiously ignoring this story.
Too bad we have to give them one billion dollars a year from our taxes and I get the truth from a free website.
I don't suppose someone could point out the chart to me where spring wheat hit $25???
A billion dollars a year?? Come on now Stan....
Now what's your real name?.... I mean, really?
Are you Ed Belfour? Are you? Are you?
You gotta be!!
Okay, in another thread I took off on some Albertans, but I have to say the CWB is the worst form of government, and express my sympathy to all Western farmers.
I used to do taxes for Ontario farmers; the saying "live poor, die rich" kept reverberating. I know it's a hard living, and I can't understand why a PC government continues to support the CWB.
I know it's a hard living, and I can't understand why a PC government continues to support the CWB.
Because they aren't really a PC government, they are lieberals in grey suits. Vendues. sellouts.
http://futures.tradingcharts.com/prairielinks/MW/W
The CWB just cooked it's last bonus. Gerry Ritz will make them all slow burn into toast. I hope the board members have to forfeit all their own property and money to pay back the Western farmers the $$ and time that they have robbed from them for years. Wayne Easter's brewery owner pals might have to buy their wheat and barley at a fair price. he will be in a fine rage in the HOC, should be a hoot to watch!
BTW, I read that Eastern farmers (buy)bought(hopefully, it is in the past tense soon) western grown wheat and barley to resell to the brewers and flour millers in Eastern Canada and abroad. They gave their own produce to their animals or sold it to feedlots. Ever wonder why the Eastern farmers never wanted any part of the CWB, yet supported it 100% for Western farmers? Follow the money.